N-Viro International Biofuel Project Receives Initial Plan Approval From Michigan State University

TOLEDO, Ohio, Dec. 16 /PRNewswire-FirstCall/ — N-Viro International
Corporation, (OTC Bulletin Board: NVIC), an environmental and materials
operating company that owns patented technologies to convert various types of
waste into beneficial reuse products, including the renewable biofuel N-Viro
Fuel(TM) and the N-Viro Soil(TM), announces that the Michigan State University
(“MSU”) Board of Trustees has authorized MSU to proceed with the planning and
design of a biofuel processing facility adjacent to the T.B. Simon Power
Plant, which is located on the University’s 5,200 acre campus. Subject to
approval of a definitive agreement between MSU and N-Viro by the MSU Board of
Trustees, this facility will manufacture N-Viro Fuel.

The N-Viro Fuel production facility, which will process biomass material
into biofuel, will enable MSU to offset a portion of the coal used at the T.B.
Simon Power Plant with renewable biofuel. When the production facility is
fully operational, it is expected to reduce the plant’s current emissions of
carbon dioxide by at least 3% to start, and create substantial additional
savings as this project grows. The N-Viro Fuel facility is expected to
facilitate the realization of financial savings for the University. It also
would assist the State of Michigan in its goal of 10% renewable power
generation by the year 2015.

Timothy Kasmoch, CEO and President of N-Viro International, said,
“Receiving the plan approval from MSU is a tremendous achievement for N-Viro
International and N-Viro Fuel, in particular. We have been working diligently
with the University to create a plan to produce biofuel that will help achieve
the goals of reducing CO2 emissions. MSU’s commitment to this project
demonstrates its determination to support positive environmental stewardship,
with corresponding benefits for its nearly 50,000 students.”

It is expected that the definitive agreement with N-Viro and authorization
to proceed with construction will be taken up by the MSU Board of Trustees in
the early Spring 2009. Once approved, a release for construction would be
issued following a competitive bidding process for construction of the
processing building. Upon final approval by the Board of Trustees,
construction of the N-Viro Fuel production facility should begin in mid-2009.
Based upon current pricing estimates, MSU’s preliminary cost for the project
construction is $20 million, which MSU currently anticipates funding through
tax-exempt financing with debt repayment from the General Fund (Power and
Water).

Mr. Kasmoch continued, “We believe N-Viro has developed the first
replicable waste-to-energy model that can benefit universities throughout the
country; one which can be funded through both public and private sector
financing. We hope that this project will demonstrate to other universities
that they, too, can achieve benefits by utilizing the renewable and
alternative, N-Viro Fuel.”

Mr. Kasmoch concluded, “With the approval to plan for the MSU facility and
our other efforts to develop N-Viro Fuel, we believe that there are
significant opportunities for this Company as a ‘green’ alternative and
renewable fuel company. We look forward to being a positive renewable energy
solution for not only MSU, but on a much broader scale as well.”

About NVIC

More information about N-Viro International can be obtained by contacting
the office or on the Internet at http://www.nviro.com or by e-mail inquiry to
info@nviro.com.

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as “expects,”
“anticipates,” “believes” and “may,” as well as similar words and expressions
used herein, identify and refer to statements describing events that may or
may not occur in the future. These forward-looking statements and the matters
to which they refer are subject to considerable uncertainty that may cause
actual results to be materially different from those described herein. For
example, while the Company expects construction of the N-Viro Fuel production
facility to being in mid-2009, construction is subject to final approval of
the Board of Trustees of Michigan State University, which may be negatively
impacted by changes in budget needs and priorities of MSU, factors in the
credit markets that may adversely affect the availability of financing for
project construction, and other factors outside of the Company’s control.
Further, the ultimate success and profitability of the project would depend on
the actual revenues and expenses of the Company, which may differ from the
Company’s estimates. Factors that may cause expenses to differ from the
Company’s expectations include, fuel and transportation costs, labor costs and
costs relating to the treatment and processing of the biosolids and creation
of the N-Viro Soil. In addition, while the Company believes that trends in
“greener” energy solutions are moving in favor of the Company’s technology,
such trends may not continue or may never result in increased sales or profits
to the Company because of the availability of competing products and other
alternative energy source. All of these factors, and other factors, will
affect the viability and profitability of the development, construction and
operation of new facilities utilizing the Company’s technologies. Additional
information about these and other factors that may adversely affect these
forward-looking statements are contained in the Company’s reports, including
its Annual Report on Form 10-KSB and other filings with the Securities and
Exchange Commission. The Company assumes no obligation to update
forward-looking statements to reflect actual results, changes in assumptions
or changes in other factors affecting forward-looking information except to
the extent required by applicable securities laws.